Transfer Real Estate to a Charitable Remainder Trust and Avoid Paying Capital Gains Tax on the Transfer

Use this checklist to see if transferring real estate to a charitable trust is a good option for you. Would you like to:

  • Sell your property and avoid capital gains tax on the transfer?
  • Be eligible for an immediate income tax deduction?
  • Receive lifetime income for yourself and/or other beneficiaries?
  • Step down from the role of landlord?
  • Avoid the need for a 1031 exchange?
  • Convert a non-income-producing second home into a lifetime stream of income?
  • Make a difference in the lives of people with cancer, diabetes and other serious illnesses?
If you answered “yes” to any of these questions, transferring your property to a charitable trust may be your answer.

Use the form on this page to request a complimentary example of your benefits. City of Hope’s Planned Giving Department is expert in facilitating the process for you.

One Couple’s Story

Birdie and Bob Feldman were looking to simplify their lives, spend more time on their favorite pastime — boating — and have a charitable impact. They came upon the perfect solution. To demonstrate their support for City of Hope, they made a gift of real estate: an apartment building they bought as an investment years ago.

With the support of City of Hope’s expert Planned Giving team, the Feldmans created a charitable trust, which enabled them to sell the property and avoid incurring capital gains tax on the transfer. The proceeds from the sale were invested, and the Feldmans receive an annual income that will continue for both their lifetimes, after which the remainder will be used to support lifesaving research and patient care.

“Forty years of being a landlord is enough. Even though we have a management company, being a landlord is very demanding. We want to be able to go on vacation without having to worry about the property … and spend more time on our boat than we are able to now. And we found a way to help people at the same time!” says Bob.


Example income and tax deduction from donated real estate:

table of Example income and Tax Deduction from Donated Real Estate *Blended Federal/California Long-Term Capital Gains Tax Rate of 33.93%. Assumes cost basis of $750,000. **Assuming a 5.5% market investment return. ***Based on a donor age 75. The unused portion of this deduction can be carried forward for an additional five years.

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